Annual Report 2014 - Swiss Capacity Building Facility€¦ · Swiss Capacity Building Facility |...

Annual Report 2014

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TABLE OF CONTENTS

Public Private Development Partnership Members Technical & Financial Contribution - Phase I

SCBF at a Glance Mission & Approach Phase I: 2011 - 2014

SCBF Operations - Global Overview Financial Products per Country Regions of Implementation

Results 2014 Regional Overview - Completed Case Studies & Partner Interview

Operations 2014 Product Up-scaling, Feasibility Studies & Financial Education Regional Overview - Approved & Under Implementation

Operational Overview - Phase I Windows & Financial Products Partner Financial Institutions & Technical Assistance Providers

Institutional Achievements 2014 Revision Articles of Association & Policies and Procedures Secretariat Set-up & Additional Member Contribution Mid-Term Review

Financial Report

Outlook

Appendices 32 Appendix 1: In-kind Contribution 33 Appendix 2: Notes Financial Statement 2014 37 Appendix 3: Internal Structure 37 Appendix 4: List of All SCBF Operations

Swiss Capacity Building Facility | Annual Report 2014

Photos Courtesy of Acre, Advans Bank Pakistan, Advans Bank Tanzania, Apoyo Integral Guatemala, ASA, Habitat Cambodia/Kea Sarith, Equity Bank Tanzania, Tinh Thoung, Women‘s World Banking

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The Swiss Capacity Building Facility (SCBF) is a pu-blic-private development partnership. It helps its Partner Financial Institutions (PFIs) - such as microin-surance service providers, microfinance banks, and postal, savings and commercial banks - to significant-ly increase their outreach to low-income households, smallholder farmers, and micro, small and medium businesses (MSMEs). The SCBF works to broaden and deepen inclusive financial sectors in the South, which has proven to be an effective strategy for alleviating poverty.

The SCBF provides a platform that adopts a new and innovative model of operation, giving the initiative to the market by involving financial institutions and consulting companies in the early stages of project planning. The SCBF also offers important networking oppor-tunities for the members and the possibility to be up-to-date about trends and learn from challenges and best practices.


PRIVATE PUBLIC DEVELOPMENT PARTNERSHIP

Members

“The development of the SCBF has been a very evolutionary process and

it has been intersting to see how the organisation grows and further evolves.

It is a rare and precious platform of collaboration between the

public & private sector.“Mario Wilhelm,

Swiss Re - SCBF member

“The SCBF provides impulses and motivation to engage ourselves in new

topics like mobile banking or innovative microinsurance products.“

Gabriella Crescini, Swisscontact - Founding member

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Technical & Financial Contribution - Phase I

In Phase I, the Swiss Agency for Development and Co-operation (SDC) committed a total of CHF 8‘850‘000 in financial contributions. Of this, CHF 2‘250‘000 was earmarked for the North Africa region, CHF 1‘000‘000 for feasibility studies, and CHF 800‘000 for financial education campaigns. Additionally, SDC committed the equivalent of CHF 182‘000 (representing 140 days) for technical expertise. By the end of 2014, CHF 4‘556‘835 was achieved for product up-scaling; CHF 1‘662‘754 for the North Af-rica region; CHF 1‘000‘000 for feasibility studies; and CHF 800‘000 for financial education campaigns. SDC had delivered 221 expertise days (equivalent of CHF 287‘300) by the end of 2014.

In Phase I, the Swiss private sector committed finan-cial contributions and technical expertise equivalent to CHF 1‘119‘800.By the end of 2014, the financial contribution amounts to CHF 450‘000, and the expertise contri-bution to CHF 578‘800 (representing 445 expertise days). This brings the sum total to CHF 1‘028‘800.For further details see Appendix 1, page 32.

For Phase I, the target for financial self-contributions from Partner Financial Institutions and third parties was CHF 1‘000‘000. By the end of 2014, the actual self-contributions amounted to CHF 5‘090‘533.

Technical & Financial Contribution - Swiss Public Sector

Technical & Financial Contribution - Swiss Private Sector

Financial Self-Contribution - Partner Financial Institutions

Mario Wilhelm - Swiss Re, Konrad Ellsässer - SMH, Brandon Mathews - Stonestep, Michael

Kortenbusch - BFC, Hans Ramm - SDC, Denis Garand (mid-term review consultant),

Laura Hemrika - Credit Suisse, Gabriella Crescini - Swisscontact, Ximena Escobar - Bamboo Finance

Christian Sinobas - KiWi, Klaus Maurer (mid-term review team leader), Markus Schär - FIDES, Gabriele Siegenthaler - SDC (guest), Ariane Appel - Secretary, Mayada El-Zoghbi (CGAP/mid-term review adviser), Maria Teresa Zappia - Blue Orchard, Olga Speckhardt - Syngenta Foundation for Sustainable Agriculture, Michael Anthony - Allianz RE

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SCBF AT A GLANCE

Approach

Mission

The Associations‘s specific objectives are to:

a) Foster the development of inclusive financial sec-tors that offer responsible, client-oriented and eco-nomically sustainable financial services that help reduce vulnerability and contribute to income and employment generation of low-income people (no-tably women), smallholder farmers, and micro, small, and medium enterprises.

b) Pool financial expertise and resources of the pri-vate and public sector, and in particular, leverage pri-vate investments to enhance the scale and effective-ness of Swiss contributions to the growth of inclusive financial services in the South.

“The SCBF is unique since it pulls together a number of different private and public sector actors that are Swiss based and share a common goal to positively impact emerging

market economies via innovative finance and insurance related Technical Assistance (TA) projects. The exposure to a variety of specialists across a multidisciplinary platform of interventions

provides a unique opportunity to keep up-to-date with a number of means to promote financial inclusion. The combination of financiers/investors and TA practitioners

is also very welcome as the two groups learn immensely from each other on how best to implement innovative projects.“

Maria Teresa Zappia, Blue Orchard - SCBF member

For SCBF‘s internal structure see Appendix 3, page 37

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2010 Founding

8Financial Education Campaigns

14 Members

1.1 Million CHF - In-kind Contribution

13Feasibility Studies

5Million CHF - Self-Contribution of Partner Financial Institutions

9.3Million CHF - Financial Contribution

45 Product Up-scaling Interventions

26Countries

55 Partner Financial Institutions


Phase I: 2011 - 2014

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SCBF OPERATIONS - GLOBAL OVERVIEW

HIGHLIGHTMid Term Review 2014page 24

HIGHLIGHTCase Study on Housing page 12

INSURANCE

Credit Life Plus

Health

Distribution Channel

Agriculture

Ecuador

LATIN AMERICA

El Salvador

Guatemala

Haiti

Honduras

Nicaragua

Egypt

NORTH AFRICA

Morocco

Tunisia

Savings

MSME Lending

BANKING

Microlending & Housing

Microlending & Water

Microlending & Energy

Delivery Channel

Financial Products per CountryProduct Up-scaling

Microleasing

Moneytransfer Savings & Insurance

COMBINEDFor further information see page 22 Feasibility Study

Financial Education

Financial Education & Feasibility Studies

Peru

Bolivia

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Regions of Implementation

HIGHLIGHTCase Study on Gendered Lendingpage 15

HIGHLIGHTCase Study on MSMEpage 16

Nepal

Pakistan

Vietnam

Jordan

MIDDLE EAST

Palestine

Product Up-Scaling Feasibility Studies Financial Education

SUB-SAHARAN AFRICA

Ethiopia

Ghana

Burkina Faso

Zambia

Tanzania

Mozambique

Senegal

Mali

Benin

Kenya

Ivory Coast

Rwanda

ASIA

Cambodia

India

Myanmar

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Middle East & North AfricaPalestine, Product Up-scaling, 2013-02Cairo Amman Bank (CAB) planned a downscaling to maximize outreach to MSEs all over Palestine, with a focus on remote areas. Due to the political situation only part of the intervention could be implemented and was stopped in November 2014.For further information see the Final Report on SCBFs website: http://scbf.ch/product-upscaling-interventions

Palestine & Jordan, Feasibility Study, FSW-04UNRWA MD received support to prepare for the transformation into an independent financial institu-tion operating in Palestine, Jordan and Syria.For further information see the Feasibility Study on SCBFs website: http://scbf.ch/feasibility-studies

Tunisia, Feasibility Study, FSW-05Enda was supported in developping a microinsurance strategy in Tunisia. A product up-scaling intervention with SCBF followed the successful feasibility study.For further information see the Feasibility Study on SCBFs website: http://scbf.ch/feasibility-studies


RESULTS 2014Regional Overview - Completed

Egypt, Feasibility Study, FSW-09ENPO (Egyptian National Post Organisation) - one of the largest financial service providers in Egypt - star-ted analysing a prospective collaboration to offer savings-based microinsurance products. The feasibi-lity study was put on hold, related to the change of ENPOs chairman. For further information see the Feasibility Study on SCBFs website: http://scbf.ch/feasibility-studies

Sub-Saharan AfricaTanzania, Product Up-scaling, 2012-07Advans Bank Tanzania developed a client-oriented SME loan product and improved its SME methodo-logy, commercial strategy and marketing and adjus-ted its risk management requirements. Additionally they improved their human resources management systems.For further information see the Case Study on page 17 and the Final Report on SCBFs website:http://scbf.ch/product-upscaling-interventions

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Tanzania, Feasibility Study, FSW-01Stonestep and FINCA International conducted a fea-sibility study to analyse the microinsurance market in Tanzania with the goal of reforming or starting a new microinsurance entity.For further information see the Feasibility Study on SCBFs website: http://scbf.ch/feasibility-studies


Latin AmericaLatin America, Feasibility Study, FSW-03Swisscontact identified the opportunity to transfer their successful microleasing product from East Afri-ca to Latin America and evaluated the feasibility of introducing the solution in Bolivia, El Salvador, Hon-duras and Peru. The feasibility study was followed by several product up-scaling interventions to conduct pilots in three Latin American countries.For further information see the Feasibility Study on SCBFs website: http://scbf.ch/feasibility-studies

India, Product Up-scaling, 2012-09Ujjivan Financial Services received technical assistan-ce to expand and adjust its individual lending pro-gramme, offering more flexible and demand-driven products, with a particular focus on meeting the needs of women entrepreneurs.For further information see the Case Study on page 15 and the Final Report on SCBFs website: http://scbf.ch/product-upscaling-interventions

Vietnam, Product Up-scaling, 2012-12Tinh Thuong Microfinance Institution (TYM) created an independent analytical risk management function at their Head Office to support the further expansi-on of sustainable and cost-appropriate financial ser-vices. For further information see the Final Report on SCBFs website: http://scbf.ch/product-upscaling-interventions

Pakistan, Product Up-scaling, 2013-04Advans Pakistan improved the productivity of its exis-ting microloan products and launched an enterprise loan to expand its outreach beyond current levels. Besides, the intervention enabled Advans Pakistan to strengthen the technical skills of its staff on various phases of the credit cycle.For further information see the Case Study on page 16 and the Final Report on SCBFs website:http://scbf.ch/product-upscaling-interventions

Myanmar, Feasibility Study FSW-08FIDES conducted a feasibility study to prepare for the start of a new MFI in Myanmar, aiming at registering the company, applying for the deposit taking license and getting a deeper and precise understanding of the demand in the pre-selected areas.For further information see the Feasiblity Study on SCBF website: http://scbf.ch/feasibility-studies

AsiaNepal, Product Up-scaling, 2011-04Manushi redesigned and piloted its microlife endow-ment product and created a new product including a health insurance component, which was very well received by the clients and distinguishes Manushi form its competitors. An additional product up-sca-ling intervention as follow-up started during 2014.For further information see the Final Report on SCBFs website:http://scbf.ch/product-upscaling-interventions

Cambodia, Product Up-scaling, 2012-05In preparation for future investment, Thaneakea Phum Cambodia (TPC) increased the number of HMF loans disbursed and tested whether construc-tion technical advice would help clients improving their living conditions, while Hattha Kaksekar Limited (HKL) improved its general construction loans and created new products that respond to client needs and specifically target residential non-commercial construction activities.For further information see the Case Study on page 12 and the Final Report on SCBFs website: http://scbf.ch/product-upscaling-interventions

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PUW 2012-05 Cambodia: Up-scaling of Housing Microfinance Products of Hattha Kaksekar Limi-ted (HKL) and Thaneakea Phum Cambodia (TPC)

Context and bottlenecks: Poverty in Cambodia has fallen considerably over the past ten years, but many families remain vulnerable to poverty. 29,4% of households live in dwellings constructed with soft or temporary wall materials and 53,6% have no access to improved drinking water. 55,8% of households nationwide do not have latrines within their residen-tial premises. Furthermore, there is a shortage of housing for low-income immigrants seeking work in the capital city of Phnom Penh. Urban poverty is ex-pected to be rising.

Since its inception, SCBF has supported three housing microfinance interventions across five countries. The objective was to build the capacity of six financial in-stitutions serving low-income households to diversify their housing products. Furthermore, the SCBF has supported one feasibility study to determine the bu-siness case for housing microinsurance for low-inco-me homeowners and explore distribution strategies through a financial institution. In order to provide a better understanding on the achievements of these interventions and to generate lessons learnt for fu-ture activities, SCBF is planning an outcome study.

In preparation for an investment by the MicroBuild Fund, the SCBF supported TPC in increasing the num-ber of housing loans disbursed and testing whether construction technical advice would help clients im-proving their living conditions. Furthermore, it sup-ported HKL in improving its construction loans by creating two separate products that respond to client needs.

Results: Today, both TPC and HKL have an enhanced home improvement loan product for repair and re-novation of existing housing - targeting poorer mar-kets - and a housing loan product for either building or purchasing a new house. Both products include a non-financial technical service that assists clients in the construction/ renovation process.

• As of end of June 2014, TPC had disbursed 1’781 housing microfinance loans totaling USD 3,5 million, with construction technical assistance.

• As of close of the pilot in December 2014, HKL had disbursed 598 housing microfinance loans totaling USD 3,3 million. Overall, HKL had disbursed 36’959 housing microfinance loans as of end of 2014.

Clients, particularly those who wanted to make more complex improvements, appreciated the construc-tion technical assistance provided. One aspect they highly valued was that during the application stage, skilled workers would review and validate that the improvement plans could be completed with the loan amount requested.

Case Study on Housing in Cambodia & El Salvador

In 2014, following two up-scaling interventions were completed:

Housing microfinance consists mainly of loans to low-income people for improvement of an existing home, construction of a new home and basic inf-rastructure. It offers small, incremental loans that allow building progressively and over time. Ac-cording to CGAP1, the demand for housing micro-finance is high and MFIs say that clients already channel a good portion of loans to home impro-vement. Housing is important. Shelter is a basic human need as it helps to ensure personal safety and he-alth. Furthermore, a home constitutes a personal asset and an investment. Often, micro entrepre-neurs use their homes to produce goods, store in-ventory, and conduct business - hence, as produc-tive assets in generating income (ibid.).

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Furthermore, they appreciated the possibility of in-cremental home improvements, completed in stages that were affordable.

Meas and her husband Eam live in Angk Romeas, a farming community near Phnom Penh. They grow two rice crops a year. Between crops, Eam works as a taxi driver. Meas and Eam have three grown children - all of whom work for a nearby garment manufacturer - and one grandchild. In August 2013, the couple took a loan of CHF 4’200. Meas recei-

ved constructi-on technical as-sistance allowing her to learn about materials and construction techniques.

The family’s new house is made of concrete and treated lumber with a metal roof. It has a sepa-rate sleeping room for the single daughters, who now have more security and privacy. The brightly painted house is built on stilts, following tradition, so that during the rainy season the living rooms stay dry. During the dry season, the space under the house provides a cool, shady spot. “This is a big house, compared to our old one,” Meas said. “Our lives have improved. It feels good to have more room and to be safe.”

Moreover, he was available by phone when Vit and Leang had questions. “We used to live in a old woo-den house, and were always afraid that the wind would destroy it because it was old and damaged by termites,” said Leang. Today, the family uses this space as kitchen and for animal storage. “Now we are happy. We can marry our children now that the house is complete.” The family plans to lay a con-crete floor and build a balcony space in the future.

Vit and Leang’s family of three children and three grandchildren grows rice and corn, and raises fish, pigs, and cows. Two daughters work in garment fac-tories. The family lives in Por Village in a new house built on stilts, financed through a HKL’s housing loan of CHF 8‘500. A civil engineer provided techni-cal assistance for a reasonable fee. He designed the house, helped purchasing materials, and provided advice to the skilled workers.

HKL received a CHF 1,9 million investment from MicroBuild Global Fund in January 2014 to increase its housing portfolio.

The following examples provide a picture of some of the results achieved at the client level:

TPC is in the pipeline for an investment.

1CGAP Donor Brief. No. 20, August 2004. Helping to Improve Donor Effectiveness in Microfinance. Housing Microfinance.http://www.cgap.org/sites/default/files/CGAP-Donor-Brief-Housing-Microfinance-Aug-2004.pdf (retrieved April 27, 2015)

TPC Home Improvement Loans (HIL) Indicators 2012 2013 2014

# of HIL disbursed 467 996 687% of total portfolio - HMF Loans 1 3 4HMF Loan disbursed (CHF) 714’946 2’222’480 1’700’970HMF Loan outstanding 616’103 2’126’340 3’259’770# Branches offering HMF 8 38 51Average loan size - HMF Loans (CHF) 1’685 1’845 1’970

PAR % > 30 days housing clients 0,00% 0,00% 0,00%

HKL Home Improvement Loans (HIL) Indicators

2014 (Dec)

# of HIL disbursed 598% of total portfolio - HIL Loans 1,25Loan Disbursed - HIL Loans (CHF) 3'269’960# Branches offering HIL 5Average Loan Size - HIL Loans (CHF) 3’530Average Loan Size – Housing Loans (incl. Construction) (CHF) 9’600

PAR % > 30 days housing clients 0,00%

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Context and bottlenecks: Around 30% of the popu-lation in El Salvador lives in poverty. The country has one of the lowest levels of use of formal financial ser-vices in Latin America. Most credit and deposit-taking activities still occur in the capital of San Salvador. In 2014, 17,2% (age 15+) had a loan from a financial ins-titution (compared to 3,9% in 2011) and 12,4% had a loan from family or friends. Another challenge for the country is the housing deficit in terms of quantity and quality (e.g. lack of proper roof, floor, space or basic services as potable water). The SCBF supported Cre-diCampo to improve its existing housing microfinan-ce product and to include housing support services such as construction technical assistance.

Results: As of end of December 2014, CrediCampo had granted 320 housing credits with a balance of CHF 427’000. During the pilot of the housing product, ch-anges in clients’ life conditions have been identified, particularly in a) safety: in a country where violen-ce is an issue, building additional rooms allow family members to continue living together and provide se-curity; b) health: improving roof conditions protects families from respiratory and skin illness brought on by harsh weather conditions such as rain and wind; c) wellbeing: building additional private spaces and diminishing overcrowding conditions; and d) increa-se of family income: clients who had to use a great part of their income for rent now have managed to invest in their own house. Clients expressed “their satisfaction for living independently” and also “being extremely happy to live in their own home instead of paying rent”. Additionally, several families now have access to electricity, concrete floors (instead of soil floors), fences (cyclone type mesh), toilets and other improvements.

Lessons learnt:• Prior to expanding any product offering, and parti-cularly housing microfinance, board and senior ma-nagement buy-in is crucial. • All interventions showed the importance of esta-blishing partnerships and aligning expectations with key stakeholders prior to the execution of the pilot.• As a non-financial, additional service, construction technical assistance requires specific conditions and preparation to be successfully implemented. It needs suitable human resources (construction professio-nals) capable of providing support on technical as-pects such as design, budget, and supervision.

PUW 2013-11 El Salvador: Building Capacity to Expand Housing Microfinance

Mrs. Mayra Mirtala Argueta Díaz: “I am a single mother with a two year old child. We both live together with my mother, sister and niece in my mom’s very small house. I have lived here for many years, but it is hard to live in such limited space. Therefore, I decided to build my own room. Thanks to God I can now work as a secretary at the City Hall in Morazán for two years and I received a loan of CHF 750 from CrediCam-po for the construction of a new room. I started with the foundation and then slowly finished the walls thanks to the mason who has helped me with the work. With the support of CrediCampo, I’m fulfilling my dream and improving the quality of life for my daughter.”

SCBF Outcome study on Housing soon available on SCBFs website: www.scbf.ch

• Loan officers face particular challenges in terms of the variety of improvements that clients plan. Their training must be continuous and an effective and ef-ficient division of labour between financial services and non-financial services is required.

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Case Study on Gendered Lending in India

Context and bottlenecks: Despite its impressive eco-nomic development, India still faces many challen-ges. More than 400 million people – one-third of the world’s poor – still live in poverty. Financial inclusion remains out of reach for many people. In 2014, 53% of the population aged 15+ had an account, but only 6,4% borrowed from a financial institution and 14,4% saved at a financial institution. While the microfinan-ce sector is relatively well developed, the market is dominated by group loan offerings with loan maxi-mums that no longer meet the needs of many female micro-entrepreneurs. As a result, business growth is significantly constrained. The SCBF co-funded WWB’s technical assistance to Ujjivan in expanding its indivi-dual lending programme, with a particular focus on meeting the needs of women entrepreneurs.

Maniyamma is a 39 year old business woman and mother of two children who lives with her husband in Bangalore. Some years ago, Maniyamma joined a group of women who had access to small group loans from Ujjivan. After receiving a multiple group loans, Maniyamma and her husband, five years ago, decided to start a catering business to be run out of their home. This was the only source of income for their family. They started small - providing snacks to friends and neighbours. After a while, Maniyamma

asked for an individual loan of CHF 1’160 working capital to buy a new refrigerator. With the loan, she was able to grow her business. Today she has around five companies to which she delivers lunch each day. With Ujjivan’s support, she was also able to open a bank account that allows her customers to pay on a weekly basis. Maniyamma’s profitable and growing catering business has enabled her to improve the living conditions of her family and to pay for her kids’ education.

PUW 2012-09 India: Leading The Expansion of Genered Individual Lending

Results: Today, Ujjivan offers more flexible and de-mand-driven products, with terms and amounts that are better adapted to the capacities of clients. Strong relationship with customers, clear product explanations and consistently good service contri-bute to client satisfaction. Since March 2013, the outstanding individual lending portfolio almost tripled from CHF 7,1 million to 17,7 million. Ujji-van’s individual client base grew by 63%. The in-dividual lending program serves 28’393 active cli-ents with a PAR of 0,42% as of March 2014. Thanks to an adapted methodology and strengthened

Lessons learnt: The essential success factor was that Ujjivan management took the risk of substantially changing its individual programme. During the inter-vention, Ujjivan decided to shift from a group lending driven organization to one that offers a wider range of products to a broader client base. This decision was motivated by the success of the intervention as well as increasing competition and general trend towards product diversification in the Indian micro-finance sector. With SCBF’s support, the groundwork for success and future expansion has been establis-hed.

Ujjivan - Key performance indicators

March 2013 (start of project)

March 2014 (end of project)

Growth

Total active clients 1’006’052 1’297’131 29%Number of active IL clients

17’401 28’393 63%

Share of IL clients / total clients (%)

1,7% 2,2% 27%

Women clients IL 100% 100%Total portfolio outstanding (CHF)

169’629’000 243’637’000 44%

IL loan outstanding (CHF) 6’932’050 17’053’300 146%Share of IL portfolio / total portfolio

4,1% 7,5% 84%

PAR > 30 days (IL) 0,53% 0,42%Average loan size IL (CHF) 400 600 51%

Productivity Indicators

Loan Officers 113 191 69%Caseload of Loan Officers (# active IL clients)

145 148 2%

Average # of IL loans disbursed by Loan Officers / month

11 15 36%

management capacity at the branch level, loan officer productivity has increased and average loan applica-tion turnaround time has been reduced to 10 days.

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Context and bottlenecks: Due to continued security issues, political instability and severe floods, Pakis-tan’s economy is highly vulnerable. A fifth of the po-pulation is estimated to live below the poverty line. Only 13% of the population aged 15+ had an account at a formal financial institution or/and a mobile ac-count; only 2% had a formal loan and 3% had formal savings (2014). Through Horus Development Finance (see interview, page 19), the SCBF supported Advans Bank Pakistan, a greenfielding institution, in increa-sing and fine-tuning its MSME offering.

Case Study on MSME Lendingin Pakistan & Tanzania

The credit officers’ productivity for microloans and the quality of services have improved (see figure on the right). Likewise, the collection and recovery pro-cess are improving: as of end of May 2014, the reco-very unit received payments from 43 of the 66 active clients it was in charge of. Since September 2013, the portfolio entering the PAR was divided by 2,25.

PUW 2013-04: Fine-tuning Advans Pakistan Products to Increase Financial Inclusion

Results: As of end of May 2014 (end of the SCBF in-tervention), Advans Pakistan had a portfolio of 1’192 active loans for an outstanding loan portfolio of CHF 520’000. The introduction of the new Ba-Ikhti-ar enterprise loan, which specifically targets entre-preneurs in need of higher loan amounts (see client profile), has significantly contributed to the growth of the loan portfolio. As of end of May 2014, and only seven months after its launch, it represented 35% of the bank’s gross outstanding loan portfolio with a to-tal of 88 loans disbursed amounting to CHF 218’000 with one loan of CHF 1’900 disbursed to a woman. -00

10 20 30 40 50 60 70 80 90 100

Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14-00

5'000'000

10'000'000

15'000'000

20'000'000

25'000'000

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uts

tan

din

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ans

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Development of Advans Pakistan's Entreprise Loan since its launch

Volume of outstanding loans Number of outstanding loans

No. of loans disbursed per credit officer

Volume of loans disbursed per credit officer

May 2013 2,0 CHF 1’100

May 2014 3,3 CHF 2’300

Advans Pakistan2013 (Jan)

2013 (Dec)

2014 (May)

Number of active borrowers 2 886 1192

Women as % of active borrowers 0 16,3 16,4

Average loan balance (CHF) 290 484 447

Number of savings & deposit accounts 33 2’083 3’227

Women as % of active depositors 15,1 16,1 16,4Average deposit balance per account(CHF)

4 48 40

Breakdown of portfolio per outstanding loan size (in %)< 1’240 CHF 100 79,4 65[ 1’240 ; 4’760 CHF ] 0 20,6 35

Break-down of deposits per deposit size (in %)< 125 CHF 92 91,6 97,5[ 125 ; 1’250 CHF] 8 7,9 2,1] 1’250 ; 12’370 CHF] 0 0,4 0,4

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Small and medium enterprises (SMEs) represent a large and economically important sector in near-ly every country in the world. In order to grow and to continue having positive impacts on the eco-nomy, SMEs need access to financial services. Ho-wever, SMEs, particularly in low- and medium-in-come countries, have historically lacked access to financial products and services. SME finance is referred to as the “missing middle” because SME financial requirements are too great for most MFIs and SMEs have been viewed as too small, risky, or costly for traditional commercial banks. However, in recent years, this has begun to change. Finan-cial institutions are now demonstrating that the SME segment can be served profitably, provided it is properly understood.2

PUW 2012-07: Launch of Advans Bank Tanzania‘s SME Lending Operations

Context and bottlenecks: Although poverty rates have declined in recent years, Tanzania still has a high national poverty rate (28% in 2012). Financial inclusi-on has improved thanks to mobile banking over the past years, but still needs to be boosted. In 2014, 40% of the population (aged 15+) had a bank or/and a mobile money account. 32% were active mobile mo-ney account users, 2% were only active bank account users and 6% both. Only 6% had formally borrowed and only 9% had formally saved. The SCBF supported Advans Bank Tanzania in developing client-oriented SME loans, up-scaling on a sustainable basis in Dar Es Salaam and Mzanza and in reinforcing the human resource policies and incentive systems.

Results: Advans Bank Tanzania offers an impro-ved, demand-driven loan with a flexible repayment schedule matching the client’s cash-flow variations over time. Furthermore, it now offers higher loan amounts. To answer SME needs, it further launched mobile banking services, a microinsurance product and a specific savings account. From January 2013 to May 2014, 259 SME loans were disbursed amoun-ting to CHF 2,8 million. The Gross Loan Portfolio was multiplied by almost 3, from CHF 560’000 at the end of 2012 to CHF 1,4 million at the end of May 2014. SME loans’ PAR 30 was reduced from 4,73% to 3,55% (with a 1,97% SME loan write-off ratio in 2013). Client satisfaction has increased as shown by drop-out rates of borrowers which decreased from 29,3% in 2012 to 15,7% in 2013. The drop-out rate of depositors decreased from 31,3% in 2012 to 2,4% in 2013.

Mr. K.’s banking relationship with Advans Pakistan began in April 2013 with a first micro loan of CHF 950. The loan allowed him to obtain more supplies and increase income. After this, Mr. K. was able to upgrade to a larger Ba-Ikhtiar Loan, which was double the amount of his first credit. Mr. K. is confident that thanks to the extra stocks bought with the loan, he will be able to maximize sales and further expand activities, especially during the run up to the Islamic Feast of Eid. Mr. K. especially appreciates the friendly customer service and that his relati-onship with the bank is based on mutual understanding and trust. Mr. K. finds the staff highly motivated, well trained and supportive which, for him, sets them apart from staff of other banks.

2http://www.ifc.org/wps/wcm/connect/b4f9be0049585ff9a192b519583b6d16/SMEE.pdf?MOD=AJPERES

18


Lessons learnt:• Despite all of the improvements in human re-source management, good training and career opportunities for staff, staff turnover remains an issue for both Advans Bank Pakistan and Tanzania. Commercial banks with higher salaries or public sector positions with lifetime employment attract many employees. • In Tanzania, the MSME sector is highly depen-dant on the external economic context. Moreo-ver, the local predominately agrarian economy is highly seasonal: the second half of the year, when people have money after the harvesting period and buy goods, is favourable for business while the first half generally displays a low level of activity.

Queen S. is dealing with cosmetics, children toys and accessories at the Kariakoo market. In 2013, she took her first loan with Advans Bank of TZS 90 million (ca. CHF 42‘000) to increase her stock. She then was granted a TZS 27 million (ca. CHF 13‘000) Spot Loan to help her dealing with customs issues. After full repayment, she recei-ved a renewal of TZS 130 million (ca. CHF 60‘000) in 2014. Satisfied with Advans’ services, she clo-sed one of her loans with another bank and is now working with Advans and only one other fi-nancial institution. Despite the development of her business, she did not hire new employees, but still works with her son and a niece who is helping out regularly. Most of her benefits are reinvested in the construction of a house being built on a plot she acquired in 2014.

Mr. T., one of Advans Bank Tanzania’s very first cli-ents, sells hair, namely braids, weavings and wigs,

- imported from countries such as Ni-geria and Dubai - at the Kariakoo market in Dar Es Salaam. When Mr. T. started taking loans, he only had a small shop at his home. Thanks to five loans of respec-

tively TZS 2 million (ca. CHF 920), TZS 4 million (ca. CHF 1‘800), TZS 5 million (ca. CHF 2‘300) and two times TZS 10 million (ca. CHF 4‘600), he has been able to significantly increase his stock and purchase large premises in Kariakoo. Mr. T. is cur-rently repaying his fifth loan and plans to apply for a sixth. He is a loyal and satisfied customer: “I started with one small shop in Manzese, now I own two big shops and am able to provide my family with all they need. Advans Bank Tanzania has been and continues to be a very big support to my business and I can’t imagine banking with anyone but them.” When asked if there were any improvements to be made, he replied: “To me everything is satisfactory, we business people are longing for affordable and easy access to loans, which is exactly what Advans offers.”

Advans Tanzania 2011 2012 2013

Number of active borrowers 581 1’470 2’757

Number of outstanding loans 581 1’482 2’761

Of which individual MSE loans 577 1’427 2’605

Of which individual SME loans 4 55 156

% of female active clients 42,6 N/A N/A

% of female active borrowers N/A 41,7 50,1

% of clients in rural areas 0 0 0

Average loan balance (CHF) 1’150 1’320 1’640

Number of savings & deposit accounts 1’725 3’443 10’438

% of female depositors N/A 38,2 47,5Average deposit balance per account (CHF)

60 380138

Clients according to income levelBreak-down of Portfolio per Outstanding Loan Size – in %

< 1’200 CHF 65,4 71,5 62[ 1200 ; 11’950 CHF ] 34,6 27,9 37] 11’950 CHF ; 59’780 CHF ] 0 0,7 1> 59’780 CHF 0 0,1 0

Break-down of Deposits per Deposit Size< 122 CHF 94,2 92,9 89[ 122 ; 1’200 CHF] 5,1 5,9 9,2] 1’200 ; 11’950 CHF] 1 0,9 1,6> 11’950 CHF 0 0,2 0,2

19


Horus Development Finances Experience Partnering with the SCBFInterview with Steven Duchatelle, Deputy CEO, Horus Development Finance

What was your experience with working with SCBF?

The experience was very positive. SCBF has shown a lot of flexibility when it came to meeting the needs of the financial institutions it supported. SCBF was eager to understand the needs of the financial insti-tution and to support the topics where TA was mostneeded. In Pakistan for example, being a greenfiel-ding institution, Advans Bank needed support in a range of areas. SCBF was willing to support three

What were/are the major challenges after these interventions?

One important challenge in Tanzania is staff turnover. The bank struggles to retain experienced senior and middle managers. Capacity building initiatives must be regularly repeated in order to make sure that the skills and experience are available within the institu-tion. Similar to Tanzania, the key challenge for Pakis-tan is staff turnover and retaining experienced loan officers. Therefore training and bonus schemes are currently being reviewed. In addition, security issues have hampered the ability of international experts to provide on the field coaching to local staff. Thus, a rapid transition to local experienced managers has been carried out in 2014.

Steven, who is Horus Development Finance and what do you do?

Horus Development Finance (HDF) is originally a consulting company and technical assistance (TA) provider in development finance. With the support of Development Finance Institutions, Horus set up Advans SA, SICAR in 2005, an investment company whose aim is to establish a network of financial in-stitutions catering for the needs of Micro, Small and Medium Enterprises in developing and transition eco-nomies. The Advans network now consists of eight “greenfield” MFIs: Advans Cameroun, Advans Ghana, Advans Banque Congo, Advans Bank Tanzania, Ad-vans Côte d‘Ivoire, Advans Pakistan, Lafayette MFB Nigeria, and Advans Tunisie, and one more mature investment: AMRET Cambodia. As of March 2015, the network had 538’000 cli-ents, of whom 56% were wo-men and 54% rural clients. Advans affiliates are commit-ted to providing clients with affordable and demand-dri-ven financial services as well as excellent customer service. Horus is the Manager of Ad-vans SA but also the privileged TA provider of Advans’ affiliates. Its role is to promote exchange of infor-mation and facilitate the dissemination of common standards across the network.

Why did you approach the SCBF for financial support?

SCBF was referred to HDF by SANAD, a co-shareholder of Advans SA in Advans Tunisia. In 2012, HDF made a proposal asking SCBF to support TA to Advans Tuni-sia. A programme was designed jointly and its cost is supported by Advans Tunisia, SANAD and SCBF. The objective was to provide Advans Tunisia with a set of tools and skills it needed to start and develop its ac-tivities. The contribution of SCBF concentrates on the launch of a range of loan products.

How do you judge the achievements of the inter-vention supported by SCBF in the context of Advans Bank Pakistan and Advans Bank Tanzania‘s work?

The contribution of SCBF proved instrumental for Advans Bank Tanzania in branching out to remote cities outside of Dar es Salaam in 2014. It allowed

for the secondment of experienced middle ma-nagers enabling them to oversee the operations while training their Tan-zanian colleagues, be-fore handing over the responsibility to them. SCBF supported Advans

Pakistan in improving productivity, launching a new Entreprise Loan in order to better serve informal and semi-formal enterprises and adapting the collection and recovery process to the Pakistani context. The contribution of SCBF proved instrumental as it allo-wed accelerating the development of its microloans portfolio but also in enterprise loans, which now re-present 55% of the portfolio (June 2015). Also, reco-very has improved significantly with PAR30 having decreased from 11% to 5% now.

distinct topics that together contributed to the over-all development. This was very helpful as donors usually tend to be focused on a single topic of sup-port. Furthermore, the SCBF was open to adapt the TA to an evolving situation that had not been predic-table, e.g. delays in approvals by authorities to open new branches. SCBF has paid particular attention to designing common reporting standards with other donors, which allows transparency and effectiveness.

“SCBF was eager to understand the needs

of the financial institution and to support

the topics where TA was most needed.“

Steven Duchatelle

20

OPERATIONS 2014

In 2014, the SCBF approved ten product up-scaling intervenions - two of which were in North Africa - for a total amount of CHF 1‘996‘359, and CHF 1‘121‘759 SCBF contribution. The self-contribution of Partner Financial Institutions and third parties stood at 44%, doubling the minimum target of 20%.

Four feasibility studies were approved in 2014 for a total amount of CHF 611‘106 and CHF 409‘172 SCBF contribution.

In 2014, two product up-scaling proposals were approved in North Africa with a total budget of CHF 539‘110 and a 51% co-funding contribution from the SCBF. There were eight ongoing product up-scaling interventions in Middle East & North Africa (MENA) and one product up-scaling intervention was comple-ted during 2014 (see page 10).


Product Up-Scaling

Feasibility Studies

Regional Overview - Approved & Under Implementation

Middle East & North Africa

Eight financial education campaigns were approved in 2014 - two of which were in North Africa - for a to-tal amount of CHF 1‘715‘166, and CHF 976‘712 SCBF contribution. The self-contribution of Partner Finan-cial Institutions and third parties stood at 43%.

Financial Education Campaigns

The self-contribution of Partner Financial Institutions and third parties stood at 33%, surpassing the recom-mended target of 20%.

Three feasibility studies were comple-ted during 2014 (see page 10), and two financial education campaigns were approved in NorthAfrica with a total budget of CHF 424‘300 and a 45% co-funding contribution from the SCBF.

approved ongoing completed approved ongoing completed approved ongoing completed# 0 2 1 0 0 1 0 0 0Budget (CHF) - 373'455 167'000 - - 203200 - - - SCBF Share (CHF) - 290'160 78'450 - - 107'000 - - - # 2 6 0 0 0 2 2 0 0Budget (CHF) 539'110 1'704'003 - - - 249'355 424'300 - - SCBF Share (CHF) 272'800 1'062'858 - - - 173'115 191'400 - - # 2 8 1 0 0 3 2 - 0Budget (CHF) 539'110 2'077'458 167'000 - - 452'555 424'300 - - SCBF Share (CHF) 272'800 1'353'018 78'450 - - 280'115 191'400 - -

Mid

dle

East

Nor

th

Afri

caM

ENA

Product Up-scaling Feasibility Studies Financial Education Campaigns Region Unit

21


Latin America

Asia

Sub-Saharan AfricaDuring 2014, six product up-scaling proposals were approved in Sub-Saharan Africa (SSA) with a total budget of CHF 1‘240‘623 and a 57% co-funding contribution from the SCBF. There were seven ongoing product up-scaling interventions in SSA during 2014 and two product up-scaling interventions were completed (see page 10).

During 2014, one product up-scaling proposal was approved in Latin America with a total budget of CHF 79‘920 and a 70% co-funding contribution from the SCBF. There were four ongoing product up-scaling in-terventions in Latin America during 2014.

During 2014, one product up-scaling pro-posal was approved for Asia with a totalbudget of CHF 136‘706 and a 64% co-funding contribution from the SCBF. There was one ongoing product up-scaling intervention in Asia during 2014 and five product up-scaling inter-ventions were completed during 2014 (see page 11).

Three feasibility studies were approved in SSA during 2014 with a total budget of CHF 538‘736 and a 67% co-funding contribution from the SCBF. One feasibi-lity study was completed during 2014 (see page 11).

Four financial education campaigns were approved in SSA with a total budget of CHF 853‘106 and a 56% co-funding contribution from the SCBF.

approved ongoing completed approved ongoing completed approved ongoing completed# 6 7 1 3 0 1 4 - 0Budget (CHF) 1'240'623 1'483'622 322'296 538'736 - 166'080 853'106 - - SCBF Share (CHF) 705'934 875'530 147'041 358'572 - 119'200 481'031 - -

SSA

Region UnitProduct Up-scaling Feasibility Studies Financial Education Campaigns

One feasibility study was com-pleted during 2014 for LatinAmerica (see page 11).

approved ongoing completed approved ongoing completed approved ongoing completed# 1 4 0 0 0 1 0 - 0Budget (CHF) 79'920 736'644 - - - 232370 - - - SCBF Share (CHF) 55'650 427'012 - - - 138050 - - - LA

TAM


One feasibility studies was approved in SSA during 2014 with a total budget of CHF 72‘370 and a 70% co-funding contribution from the SCBF. One feasibility study was completed during 2014 (see page 11).

Two financial education campaigns were approved in SSA with a total budget of CHF 437‘760 and a 63% co-funding con-tribution from the SCBF.

approved ongoing completed approved ongoing completed approved ongoing completed# 1 1 5 1 0 1 2 0 0Budget (CHF) 136'706 249'723 843'870 72'370 - 206060 437'760 - - SCBF Share (CHF) 87'375 149953 611'745 50'600 - 113000 275'700 - -

ASIA


22

OPERATIONAL OVERVIEW - PHASE I


2014 since inception (2011)

Product Up-scaling Interventions approved 10 45

Total Product Up-scaling Intervention budget (CHF) 1'996'359 9'509'657

Approved SCBF contributions (CHF) 1'121'759 5'826'423

Average SCBF contribution (CHF) 112'176 129'476

Average cost share of PFIs and third parties 44% 39%

Product Up-scaling Window (PUW)

2014 since inception (2013)

Feasibility Studies approved 4 13

Total Feasibility Study budget (CHF) 611'106 1'951'242

Approved SCBF contributions (CHF) 409'172 1'277'968

Average SCBF contribution (CHF) 102'293 98'305

Average cost share of PFIs and third parties 33% 35%

Feasibility Studies Window (FSW)

since inception (2014)

Financial Education Interventions approved 8

Total Financial Education Intervention budget (CHF) 1'715'166

Approved SCBF contributions (CHF) 976'712

Average SCBF contribution (CHF) 122'117

Average cost share of PFIs and third parties 43%

Financial Education Window (FEW)

Financial Productssupported since inception

Product Development 22MSME Lending 15

Savings 5

Money Transfer 1

Microleasing 1

Microlending & technical services 7

Housing 2

Water 2

Energy 3

Delivery Channel Development 8

Bank

ing

Product Development 7Agriculture 2

Health 3

Credit Life Plus 2

Distribution Channel Development -

Savings with insurance component 3

Insurance with savings component 2

Insu

ranc

eCo

mbi

ned

For a list of all interventions see Appendix 4, page 37

23


AccionBamboo FinanceBusiness & Finance Consulting Financial Systems Development Services FINCA InternationalGFA Consulting GroupHabitat for Humanity InternationalHorus Development Finance KiWiMCrilMicrofinanza (Consultants)

2

Equity Bank RwandaFIDES Microfinance SenegalFINCA HaitiFINCA NicaraguaFundacion CampoHattha Kaksekar LImited HekimaKiWi MoroccoLetshego Rwanda Limited ManushiMicro Banco FIDES MozambiqueMyanmar Microfinance Ltd.NMB Bank LImitedPride RFWSonapostThaneakea Phum Cambodia Tinh Thoung Microfinance InstitutionUjjivan Financial ServicesUNRWA Microfinance DepartmentVitas JordanWasasa

Partner Financial Institutionssupported since inception (PUW only)

Technical Assitance Providersupported since inception (PUW, FSW & FEW)

2 Insurance Brokers

8 Micro Banks

9 Commercial Banks

4 Postal Banks

14 Deposit-taking MFIs

12 Microcredit Organisations

3 Primary Insurers

1 Aggregator/Agent

MicroInsurance Centre PamigaPlaNet FinanceresponsAbilitySwiss Microfinance Holding StonestepSyngenta Foundation for Sustainable AgricultureSwisscontactWomen’s World Banking

Alexandria Businessmen Association Acre AfricaAdvans Bank PakistanAdvans Bank TanzaniaAdvans Bank TunisiaAl Barid BankAlliance for Microfinance in Myanmar Apoyo Integral Guatemala ASA InitiativeAssociation Al AmanaBanco PichinchaBanco PopularBank of KigaliBuusa Gonofaa Cairo Amman Bank Commercial International Life Insurance Company ComixmulCrediféCrédit Immobliier & Hôtelier Dakahlya Businessmen Ass. f. Community DevelopmentEFC ZambiaEgyptian National Post Organization ENDA Inter-arabeEquity Bank Tanzania

24

INSTITUTIONAL ACHIEVEMENTS 2014


The SCBF Articles of Association were adjusted to re-flect a new organisational set-up and to allow written approval to amendments to the Articles of Associa-tion by the majority of all members, in an effort to streamline the approval process.Additionally, the Operational Policies and Procedures were further developed regarding the organisational structure and processes as well as responsibilities among the bodies of the SCBF as to maximise institu-tional effectiveness.Eligibility criteria for Partner Financial Institutions and selection criteria for product up-scaling interventions were revised and refined. Members also decided to set the ceiling for any intervention at a maximum of CHF 150‘000 and to abandon tendering procedures.

There was a strong focus on the improvement of monitoring guidelines, including clarification on the monitoring tasks set for SCBF members and on the reporting requirements for the Grantees. The appli-cation forms as well as the contract templates were adjusted accordingly.

Due to SCBF‘s swift expansion in 2012-2014 and rapid institutional growth, members decided to establish an independent management structure within the SCBF Association to increase support for the work being done. Members agreed to assign further resources to the administration of the organisation, whereupon also confirming the objective of maintaining lean proces-ses. The structure consists of the Secretariat with three part-time positions (equivalent 1.4 full time position) and a Management Oversight and Advisory Committee (O&A Committee) formed by two private sector and the public sector member to supervise the Secretariat and provide strategic advice and support.

In order to support ongoing product up-scaling inter-ventions, a third window, earmarked for members and SDC partners only, was established in January 2014. The ´Financial Education Window´co-funds fi-nancial education campaigns that are pre-conditions for introducing insurance and other new financial services, and in operational areas of PFIs where fi-nancial literacy level are low.

Financial Education Window

Revision of Articles of Association &Operational Poicies and Procedures

Secretariat Set-Up

Based on SCBFs unexpected fast growth, the funding for product up-scaling interventions became fully committed by March 2014. As the SCBF already had a concrete pipeline for this window, the public sector member confirmed an additional financial contributi-on over CHF 800‘000 to ensure that SCBF‘s successful growth momentum would be utilized. To indicate their commitment in driving the SCBF forward, the private sector members also increa-sed their in-kind contrbution between five and thirty days of technical expertise, over one to two years, to a total value of CHF 247‘000.

An external mid-term review (MTR) of the SCBF was conducted by a team of independent experts bet-ween July and September 2014, assessing the opera-tional and institutional development of SCBF so as to lay the basis for its future strategic planning.The guiding methodology for this review were the standard evaluation criteria of the Development As-sistance Committee (DAC) at the OECD relevance, effectiveness, efficiency and sustainability and the Portfolio Review Methodology developed by CGAP for financial inclusion.

Twenty-four sample interventions were assessed in details, which represents 43% of all SCBFs interven-tions as of July 2014. Additionally, interviews were conducted with all members and other stakeholders and the experts visited eleven SCBF funded interven-tions in Tanzania and Egypt. The evaluation confir-med that the SCBF is generally on a good path to-wards achieving its targets for phase I.

Mid-Term Review

Additional Member Contributions

25


The relevance of the SCBF and its role for deepening financial inclusion was considered high by the assess-ment. The MTR saw this manifested in the SCBF‘s emphasis on massive up-scaling of financial services and its strong focus on Africa, on rural areas, and on savings and insurance services. Nonetheless the experts had the impression that some greater strategic clarity should be required with respect to the SCBFs objective. A Working Group of SCBF Members have discussed this recommendation from the MTR and will present a rationalization for approval by the members at the beginning of 2015.

“Overall, the SCBF is a lean, fast and efficient facility.“

MTR team

Regarding effectiveness, the MTR stated that the SCBF was on a good path towards achieving most of its objectives, with the exception of the institutional learning and the leveraging of capital from social in-vestors. They recommended to further structure ins-titutional learning and to set goals and targets more realistically on the project level. The MTR also re-commended further improvement of monitoring and reporting systems in order to measure effectiveness and to improve the learning loop within the SCBF. Based on this feedback, the minimum target for the interventions was revised and conversations were in-itiated around knowledge management and enhan-ced monitoring procedures.

“The diversity of members with complementary skills has become

a key strength of the SCBF. The spirit among the members is high and

the ownership is strong. Member organisations are represented

with senior people with expertise and experience.“

MTR team

The institutional set-up at the SCBF, including the im-provements made during 2014, were viewed as ef-ficient and conducive to reaching the SCBFs overall goals, objectives and targets. The direct-award pro-curement methods were shown to be as cost-effec-tive and principally acceptable, with the recommen-dation to further improve checks and balances to prevent conflicts of interest and reputational risks. A recommendation was made to increas the budget for management and administration, in order to ensure good monitoring, reporting and oversight functions. As a result, members decided to further strengthen the Secretariats position and discussion around the employment of a Financial Administrator & Control-ler were started and later approved at the beginning of 2015.

“SCBF has ´torn down the firewall´

between the private corporate banking and finance industry and the development finance sector

in Switzerland.“MTR team

The MTR stated that it was too early to assess sus-tainability on a project level. Nonetheless they noted that some key design features of the SCBF in principle enable high potential for sustainability. At the institutional level, it was emphasized that sus-tainability will primarily depend on further funding from the public and the private sector. The MTR th-erefore recommended exploring a variety of oppor-tunities to attract additional financial contributions.

26


27


28


For the notes see Appendix 2, page 33

29

OUTLOOK


An agricultural microleasing feasibility study in Latin America, which was completed mid-2014, paved the way for several pilots in the region. Three microlea-sing product up-scaling interventions for Peru, El Sal-vador and Honduras are in the pipeline to prepare and test microleasing, based on the findings of the successful feasibility study. This will enable smallhol-der farmers to access income-generating assets, such as livestock and agricultural implements, which they would not be able to acquire through loan financing.

Feasibility studies for the agricultural microinsurance operations of ACRE are in the pipeline - depending on the results of a planned in-depth assessment of ACRE‘s operations by SDC in Tanzania and Kenya - so as to support ACRE in entering new markets in addi-tion to Tanzania. In line with its priority to help im-prove the livelihoods of smallholder farmers through client-oriented financial services, the SCBF is keen to support the expansion of ACRE in providing agricul-ture insurance solutions for smallholder farmers that are embedded in the business operations of seed producers and lending institutions.

Following the launch of the Financial Education Window, the SCBF has planned a Financial Education workshop in India for 2015 to ensure that learnings were shared between similar initiatives in different regions. The event will be organised by Accion and Micro Banco FIDES Mozambique as well as the Alli-ance for Microfinance in Myanmar. They will join to-gether to present their experience with SCBF co-fun-ded campaigns in offering financial education to low-income people, notably low-income women and smallholder farmers.

ContactSwiss Capacity Building Facility

Route de la Fonderie 6, CP 531705 FribourgSwitzerland

Seebahnstrasse 858003 ZurichSwitzerland

Phone: +41 79 132 93 23Email: [email protected]

Since inception, the SCBF envisaged conducting out-come studies on specific topics, once sufficient data from SCBF interventions was available for such an in-depth assessment. For 2015, the SCBF now plans to conduct an outco-me study on micro housing finance by independent researchers. They will collect and analyse outcome data at the end user level and from Partner Financial Institutions to generate key lessons for the SCBF and interested stakeholders.

In line with a key recommendation of the mid-term review, the SCBF will employ a Chief Financial Admi-nistrator & Controller who will set the consultancy fee levels - as independant authority in line with SCBF‘s global database on consultancy fees (to be further developed) - and will enter into negotiations with the Grantees. This financial administration and pro-curement specialist will relieve the members of the Sub-Steering Committees from discussing and deci-ding on consultancy fee levels and thereby concen-trating on operational issues only. This will strengt-hen the governance of the Sub-Steering Committees where SCBF members will no longer decide on the fee levels of interventions by their peers.

As recommended by the mid-term review, the SCBF has started a Working Group on Resource Mobilisati-on to discuss growth plans, including mobilisation of new partners and sponsors from the Swiss public and private sector.

Strategic Orientation for 2015

31

APPENDICES


- Appendix 1In-kind Contribution of Swiss Private Sector & SDC (status 31.12.2014)

- Appendix 2Notes on Financial Statement 2014

- Appendix 3Internal SCBF Structure

- Appendix 4List of All SCBF Operations (status 31.12.2014)

32

APPENDIX 1: In-kind Contribution of Swiss Private Sector & SDCas per 31.12.2014

Swiss Capacity Building Facility | Annual Report 2014Se

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33

APPENDIX 2:Notes on Financial Statement 2014


34


35


36


37


APPENDIX 3:Internal SCBF Structure

APPENDIX 4:List of All SCBF Operationsas per 31.12.2014

Product Up-scaling Support Completed2011-02 Senegal Better outreach and productivity for financial services in rural areas through the use of mobile phone technology

2011-03 Cambodia Developing a sustainable savings strategy with leading MI in Cambodia

2011-04 Nepal Innovative microinsurance products for rural poor in Nepal

2011-06 Tanzania Promotion of women small businesses in Tanzania

2011-08 Nicaragua Building risk management capacity to increase outreach in Nicaragua

2011-09 Ecuador Promoting access to savings for the working poor in Ecuador

2012-02 Rwanda Fostering financial inclusion in rural areas through innovative channels in Rwanda

2012-03 Zambia EFC Zambia Branch Interconnectivity – Improving banking services and rural outreach

2012-05 Cambodia Capacity building for housing microfinance

2012-07 Tanzania Launch of ABT’s SME lending operations

2012-09 India Leading the expansion of gendered individual lending

2013-01 Morocco Tailoring a mobile banking application to BoP

2013-03 Tanzania Access to water and energy through microfinance

2013-04 Pakistan Fine-tuning of products range and adaptation of the Advans model to Pakistan

38

Product Up-scaling Under Implementation

2011-05 Morocco Innovative distribution channel: "Barid Cash" – Postal Banking

2011-07 Egypt Launch of savings-based microinsurance product in Egypt

2012-01 Senegal Introduction of microinsurance in the product offer of rural MFI in Senegal

2012-04 Tunisia Launch of MSME loan products

2012-06 Guatemala Institutional strengthening for financial inclusion

2012-08 Mozambique Strengthening asset building strategies through microinsurance

2012-10 Mozambique Outreach expansion through mobile banking services

2012-11 Nepal Downscaling to increase outreach to microfinance clients

2012-12 Vietnam Achieving lasting financial sustainability by setting up a modern risk management system

2013-02 Palestine Bank Downscaling in Palestine

2013-05 Morocco Replicating Caregiver: Providing health microinsurance to low-income clients of Association Al Amana

2013-06 Senegal Strengthen SLF position in the Senegalese SME market

2013-07 Ethiopia Access to water and solar energy through microfinance (replication of #2013-03)

2013-08 Morocco Scaling up mobile banking: Delivering G2P benefits to rural areas

2013-09 Honduras Strengthening middle management & reviewing products and segments offer in MSMEs

2013-10 Haiti Providing access to finance for Haiti’s rural and agricultural populations

2013-11 Honduras, ElSalvador Building capacity to expand housing microfinance in Central America

2013-12 Tanzania Promotion and acceleration of women small businesses

2013-13 Morocco Bank Downscaling in Morocco

2013-14 Jordan Development of small enterprise lending at Vitas Jordan

2014-01 Tanzania Introducing agricultural insurance to smallholder farmers in the Arusha region

2014-02 Tanzania Introducing agricultural insurance to smallholder farmers in the Iringa region

2014-03 Morocco KiWi eKiosk pioneering integrated cards & mobile payments for micromerchants

2014-04 Ghana Introduction and up-scale of microloans for the distirbution of bichar stoves

2014-05 Nepal Scaling up of innovative Microinsurance products for rural poor

2014-06 Burkina Faso Development of savings and insurance products for migrants through international postal transfers

2014-07 El Salvador Microleasing pilot

2014-08 Rwanda Building capacity to expand housing microfinance

2014-09 Rwanda Fanikisha+ Rwanda: Promotion and acceleration of women small businesses

2014-10 Tunisia Support to launch first commercial microinsurance product in Tunisia

Product Up-scaling Suspended2011-01 Palestine Pilot test of savings products in a MFI in Palestine


39

Feasibility Studies CompletedFSW-01 Tanzania Feasibility study and business case development for Tanzania

FSW-02 Morocco Development of an ePayment solution adapted to micromerchants

FSW-03 Latin America Microleasing Latin America

FSW-04 Palestine, Jordan Support to the transformation of UNRWA MD into a microfinance bank

FSW-05 Tunisia Microinsurance - Strategic business development for ENDA Interarabe

FSW-06

Senegal, Mali, Benin, Ivory Coast, Burkina Faso

Business plan for microinsurance in West Africa

FSW-07 Tanzania Feasibility study on agricultural insurance in Tanzania

FSW-08 Myanmar Myanmar Microfinance Ltd. - Preparation Phase

Feasibility Studies Under ImplementationFSW-09 Egypt Assessing options for distribution of microinsurance through ENPO

FSW-10 Kenya & DRC Kenyan housing microinsurance feasibility study

FSW-11 Myanmar Feasibility study for implementation of key performance indicators and program linking of independent PACT programs PGMF and VRF

FSW-13 Ghana Inclusive financial services for cocoa growing families through a holistic outgrower finance approach

Feasibility Studies Approved But Not Launched 2014FSW-12 Mozambique Feasibility study for agricultural insurance

Financial Education Campaigns Under Implementation

FEW-01 India Financial education for underserved clients

FEW-02 Tanzania Introducing agricultural insurance to smallholder farmers in the Arusha region

FEW-03 Tanzania Introducing agricultural insurance to smallholder farmers in the Iringa region

FEW-04 Morocco KiWi eKiosk pioneering integrated cards & mobile payments for micromerchants

FEW-05 Mozambique Financial education in an inclusive finance approach based on the development of Savings and Credit Groups

FEW-06 Rwanda Financial education: Fanikisha+ Promotion and acceleration of women small businesses

FEW-07 Tunisia Financial education to support the first microinsurance products in Tunisia

FEW-08 Myanmar Financial education in Myanmar


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